World Wide Fund

World Wide Fund (WWF) Malaysia
1.0
INTRODUCTION
1.1
Non Profit Organisation
Like all organization, nonprofit organizations vary much it terms of mission, size mode of
operation and impact, particularly in a cross national sense. Some are closer to the model of a
government agency, other may indeed resemble the business firm, and yet others may be little
more than an informal network. These variations not withstanding however, there is an
emerging consensus among researches in the field that non profit organization have the
following core characteristic (Salamon and Anheir, 1997).
a) Non- profit distributing not returning any profit generates to owner or equivalents,
which distinguish non -profit from business.
b) Voluntary- being non-compulsory in nature and with some degree of voluntary input
either the agencys activities or management.
c) Organised- processing some institutional reality, this separates the organization from
informal entities such as families, gatherings or movement.
With this definition at hand, we can then ask if the non profit form is intrinsically
associated with distinctive features that lead to characteristic behaviour and outcomes. In fact,
many writers have made such claims:, Kramer (1981) sees the essence of voluntary agencies,
Hudson (1999) and Paton (1996) identify the value orientation of non-profit organization as
their essential feature, Tonkiss and Passey (1999) suggests that trust and voluntarism are at
the centre of non profit organization. Billis (1989) sees ambiguity as the essence of most
non-profit organization, and Lohmann (1989) finds that the notion of the common is the key
to understanding this type of organization.
We buy goods of daily consumption from the general store of your locality, such as
clothes from cloth shop or we can see a movie in a cinema hall. These are all business
organisation that deal in purchasing and selling goods and services. Their aim is to earn
profit. But we go to hospital for the treatment, and also a member of a sports club of our area.

These are the organisation that are founded not to earn profit but to provide services to their
members and to the community in general.
Their objective is not to make profit but to serve. These are called Non- Profit
Organization. Their main source of income is membership fees, subscription, donation, and
etc. As the money is involved in the activities of these organisations, they also maintain
accounts. These organizations prepare certain statement to ascertain the results in financial
terms of their activities for a particular period of one year.
In Malaysia, there is no specific accounting standard for the NPOs to prepare their
especially related with the reporting and disclosure requirements. However, NPOs are
encouraged to comply with the International Financial Reporting (IRFS) issued by
International Accounting Standard Board and adopted by the Malaysian Accounting Standard
Board (MASB) or reporting standards applicable for private entities (PERS) in the
preparation and presentation of their financial statement. Besides that, a number of act and
standard that bound the NPO but subject to several factors like type and nature of NPO and
registration are the Societies Act 1996, the Company Act 1965, Trustees (Incorporation) Act
1952, Income Tax Act 1961 and Statement of Financial Account Standard 116.
There are two method used in classifying the nonprofit organization, the first is based on
the ability of that organization to generate the fund which is self - sustained and non sustained, while the second is based on the nature of their work. Under the first method, the
NPO is classified as a self - sustained and non self sustained. The self- sustain organization
is the non profit organization generate fund for their company with own fund. According to
resource dependence theory, an organization operating in this environment will survive if
they can manage the flow of resources and reduces the uncertainty in their environment .An
important strategy in ensuring sustainability of the organization to communicate relevant
information to the current and future resource providers.
The primary purpose of balance sheet is to provide relevant information about an
organisations assets, liabilities and net assets and about their relationships to each other at a
moment in time. The information provided used with related disclosures and information in
other financial statements will helps donor, members, creditors, and others to assets the
followings:

a) The organizations ability to continue to provide services
b) The organizations liquidity, financial flexibility, ability to meet obligations and needs
foe external financing.
According to our given project, we need to find one related industry based on this nonprofit organisations. Therefore, we decided to choose WWF-Malaysia as our non profit
organisation. This report only focused on the private NPOs, not the government agencies,
since the government agencies in Malaysia are based on their specific requirement and
guidelines. The discussion will emphasize on the requirement by the related laws and
regulation and accounting treatment.
1.2
World Wide Fund (WWF) For Nature Malaysia
WWF stands for World Wide Fund for nature. It was formerly known as the World Wild Life
Fund adopted its current name to show that is also works on other environmental issues and
not just wild life. WWF is one of the worlds largest conservation organizations. WWF is an
independent foundation registered under Swiss Law. WWF is also a nonprofit organisation.
WWF Malaysia has come a long way since its coming into being on the 13 th January
1972. In the early days we had solely focused on wild life conservation such as saving
endangered species like the tigers and the turtles, today their work has extended to encompass
marine and forest conservation as well, from to protecting our highlands and forests and also
our rivers and seas.WWF Malaysia began as a humble two person organisation. But, today
they have close to 200 people working with them from Kedah to Sabah. Also known as
Tabung Alam Malaysia, we are governed by a Board of Trusted. Their conservation work
focuses on species, forests, and fresh water, marine and environmental education.
From high up in the mountain tops to down low at the bottom of the sea, WWF Malaysia
is working hard to help protect the countrys natural environment through our various
conservation programmes. WWF Malaysia focuses its conservation work on large scale
priority areas that encompass a broad range of wild life and ecological systems. The ultimate
goal is to achieve long term and sustainable conservation impact in the country by
conserving, restoring and protecting a diversity of species, forest, marine, coastal and fresh
water environmental. For a living planet for us, for our children and the generation to come.

2.0
NATURE AND FUTURE OF INDUSTRY
Nature of a non profit organization is to serve the public for a defined purpose, without
being profit oriented. The establishment of such an organization is not for business or for
individuals to shield their assets or avoid payments of income taxes. They are permitted to
make profits, provided profits are channelled to the specific needs that are approved by the
tax regulatory body of the country.
For example, in WWF works to strengthen communities ability to conserve the natural
resources they depend upon. We help them secure the rights; capacities and knowledge they
need to strengthen their role as stewards of the environment, and improve their live hoods and
health. We also promote innovation, learning and implementation of strategies to expand
community conservation across longer landscapes. This include
a) Facilitating links across communities
b) Building capacity of support institutions
c) Promoting policy framework for community tenure decentralized governance and
sustainable live hoods.
Besides that, WWF also in social activities without expecting any revenue or gain from
that. For example, empower women and improve health for girls and women. Girls and
women often play a central role in nature resource management and use collecting forest
products for food, medicine and firewood and water for their families. WWF help them gain
better access to education and health services such as improving drinking water, vaccinations
and family planning so they can improve their lives and helps lead environment change in
their families and community.
When we talk about WWF future, they work globally with every sector at every level. To
accomplish our ambitious goals, WWF work to educate and influence people into making
sustainable choices and decision around the use of natural resources and those who work in
government and set policy that impacts nature. They work globally at every level in the field
and in the local community, from the halls of government to the global market place. One of
WWFs strength is our ability to engage stakeholders in business, civil society and academia.
Working together with 1.1 million supporters, WWF partners, project and experts are making
a difference in creating a healthy future for our plant.

3.0
RELATED LAWS AND STANDARD
In Malaysia, there is no specific accounting standard for the NPOs to prepare their especially
related with the reporting and disclosure requirements. However, NPOs are encouraged to
comply with the International Financial Reporting (IRFS) issued by International Accounting
Standard Board and adopted by the Malaysian Accounting Standard Board (MASB) or
reporting standards applicable for private entities (PERS) in the preparation and presentation
of their financial statement. Besides that, a number of act and standard that bound the NPO
but subject to several factors like type and nature of NPO and registration are the Societies
Act 1996, the Company Act 1965, Trustees (Incorporation) Act 1952, Income Tax Act 1961
and Statement of Financial Account Standard 116.
Under Financial Accounting Standard Board (FASB) 117, financial statement of non
profit organization, the establishment of standard for general purpose external financial
statement provided by a nonprofit organization. This statement requires that all nonprofit
organization provide a statement of financial position, a statement of activities, and a
statement of cash flows. This statement also requires classification of an organizations net
assets and its revenue, expenses, gains and losses based on the existence of absence of donor
imposed restrictions. It requires that the amounts for each of three classes of net asset :permanently restricted, temporarily restricted and unrestricted. This statement amends FASB
statement No 95 statement of cash flows, to extend its position to nonprofit organization and
to expand its description of cash flow from financing activities to include certain donor
restricted cash that must be used for long term purposes.
Under Financial Accounting Standard Board (FASB) 116, standards for general-purpose
external financial statementsprovided by a non profit organizations. It specifies that those
statements include astatement of financial position, a statement of activities, and a statement
of cash flows. ThisStatement also amends FASB Statement No. 95, Statement of Cash Flows,
to extend itsprovisions to non profit organizations. It also specifies that voluntary health and
welfare organizations continue to provide a statement of functional expenses, which is useful
inassociating expenses with service efforts and accomplishments of non profit organizations.

4.0
FINANCIAL STATEMENTS NEED TO BE PREPARED BY NON PROFIT
ORGANISATION
In World Wide Fund (WWF) for Nature Malaysia which is WWF is NPO, they should
prepare generally all NPO need to prepare a complete set of annual account based on MASB
standard, that consists of statement of financial, income and expenditure statement, cash flow
statement, notes to account and trading account. Statement of Financial Position summarizes
the assets, liabilities and net assets of the organization at a specified data. It is a snapshot of
the organisation financial position on that date.
Statement of activity (also called an income and expenses statement), this reports the
organisations financial activity over a period of time. It shows income minus expenses,
which results in either a profit or loss. Statement of cash flow summarizes the resources that
become available to the organisation during the reporting period and the uses made of such
resources. It is especially useful in real time because it reports income that has been received
and expenses that have been paid.
Statement of projected cash flow is helpful for the board and the organization to be
able to anticipate any shortfalls for planning purposes. Statement of functional expenses
reports all expenses as related either to program services or to supporting services. Expenses
under program services are shown dividend among the various programs. Expenses under
supporting services are generally divided between (1) management and general expenses and
(2) fundraising expenses.
According to the MASB standard, each component in the financial statement shall be
identified clearly. In addition, the following shall be displayed prominently and repeated
when it is necessary for a proper understanding of the information presented:
a) The name of the reporting organization or other means of identification, and any
change in that information from the proceeding balance sheets date
b) The balance sheet date or the period covered by the financial statements, whichever is
appropriate to that component of the financial statements
c) The presentation currency
d) The level of rounding used in presenting amounts in the financial statements.

Financial accounting for NPO also requires a specific expertise and knowledge especially
when deal with the income that received from various resources and come with the different
way and nature. It also practiced fund accounting that requires accountant to manage
efficiently to ensure the objectives and achieved. Similar to the other organization, they are
requires by the law and regulation to prepare the financial statement that consists of several
statement like balance sheet, income and expenditure statement, but the objective of
preparation of income statement are mostly to fulfil the accountability instead of delivering
the information.

5.0
DISCLOSURE REQUIREMENT OF A SPECIFIC ITEM FOR THAT NON
PROFIT ORGANISATION
According to Financial Accounting Standard Board (FASB), there are two Statement of
Financial Accounting Standards need to be following by Non-Profit Organization (NPO)
which is standards No. 116 and 117. It also known as FASB116 and FASB117. Under FASB
116, there are 8 paragraph explain about the requirement that need to be comply by every
NPO which are paragraph 8 (Contributions Received), 14-16 (Reporting by Not-for-Profit
Organizations), 17 (Expiration of Donor-imposed Restrictions), 20 (Measurement at Fair
Value), 29 (Effective Date and Transition).
FASB117 focus on the statement need to be prepared by NPO. There are 3 statements
including Statement of Financial Position (paragraph 916), Statement of Activities
(paragraph 1728) and Statement of Cash Flows (paragraph 2930).
5.1
Financial Accounting Standard Board (FASB) 116

5.1.1 Contributions Received
According to Paragraph 8 FASB 116, Contributions received shall be recognized as

revenues or gains in the period received and as assets, decreases of liabilities, or expenses
depending on the form of the benefits received. Contributions received shall be measured at
their fair values. Contributions received by not-for-profit organizations shall be reported as
restricted support or unrestricted support as provided in paragraphs 14-16.
Paragraphs 14, FASB 116 discuss about Reporting by Not-for-Profit Organizations
for contribution received. A not-for-profit organization shall distinguish between
contributions received with permanent restrictions, those received with temporary
restrictions, and those received without donor-imposed restrictions. A restriction on an
organization's use of the assets contributed results either from a donor's explicit stipulation or
from circumstances surrounding the receipt of the contribution that make clear the donor's
implicit restriction on use. Contributions with donor-imposed restrictions shall be reported as
restricted support; however, donor-restricted contributions whose restrictions are met in the
same reporting period may be reported as unrestricted support provided that an organization
reports consistently from period to period and discloses its accounting policy. Restricted
support increases permanently restricted net assets or temporarily restricted net assets.

Contributions without donor-imposed restrictions shall be reported as unrestricted support
that increases unrestricted net assets.
5.1.2 Expiration of Donor-imposed Restrictions
According to paragraph 17 of FASB 116, a not-for-profit organization shall recognize the
expiration of a donor-imposed restriction on a contribution in the period in which the
restriction expires. A restriction expires when the stipulated time has elapsed, when the
stipulated purpose for which the resource was restricted has been fulfilled, or both.If an
expense is incurred for a purpose for which both unrestricted and temporarily restricted net
assets are available, a donor-imposed restriction is fulfilled to the extent of the expense
incurred unless the expense is for a purpose that is directly attributable to another specific
external source of revenue.
5.1.3 Measurement at Fair Value
The present value of estimated future cash flows using a discount rate commensurate with the
risks involved is an appropriate measure of fair value of unconditional promises to give cash.
Subsequent accruals of the interest element shall be accounted for as contribution income by
donees and contribution expense by donors. Not-for-profit organizations shall report the
contribution income as an increase in either temporarily or permanently restricted net assets if
the underlying promise to give is donor restricted. Not-for-profit organizations shall report
the contribution income as an increase in either temporarily or permanently restricted net
assets if the underlying promise to give is donor restricted. It was stated under paragraph 20,
FASB 116.
5.1.4 Effective Date and Transition
Paragraph 29, FASB 116 disclose a not-for-profit organization shall report the cumulative
effect of a change in accounting on each class of net assets in the statement of activities
between the captions "extraordinary items," if any, and "change in unrestricted net assets,"
"change in temporarily restricted net assets," and "change in permanently restricted net
assets."

5.2
Financial Accounting Standard Board (FASB) 117

5.2.1 Scope
According to Financial Accounting Standard Board (FASB) 117,paragraph 7, this Statement

specifies certain basic information to be reported in financial statements of not-for-profit
organizations. Its requirements generally are no more stringent than requirements for business
enterprises. A set of financial statements includes, either in the body of financial statements or
in the accompanying notes, that information required by generally accepted accounting
principles that do not specifically exempt not-for-profit organizations and required by
applicable specialized accounting and reporting principles and practices. For example,
Financial Accounting Standards Board Not for redistribution not-for-profit organizations
should apply the disclosure and display provisions for financial instruments; loss
contingencies; extraordinary, unusual, and infrequently occurring events; and accounting
changes.
5.2.2 Statement of Financial Position
According to FASB 117, paragraph 9, the primary purpose of a statement of financial
position is to provide relevant information about an organization's assets, liabilities, and net
assets and about their relationships to each other at a moment in time. The information
provided in a statement of financial position, used with related disclosures and information in
other financial statements, helps donors, members, creditors, and others to assess:
a) the organization's ability to continue to provide services and
b) The organization's liquidity, financial flexibility,3 ability to meet obligations, and
needs for external financing.
In paragraph 89 of FASB 117, classify assets and liabilities as current and noncurrent,
although not required by generally accepted accounting principles, is a common reporting
practice of both business enterprises and not-for-profit organizations. As others have noted,
this classification alone generally does not provide users of financial statements with the
liquidity information they need.
10

Thus, other disclosures must be added to the financial statement or notes to financial
statements. More recently, financial reporting has emphasized information about changes in
cash and cash equivalents, and that new emphasis obviates the need for a rigid requirement to
classify and report amounts of current assets and current liabilities.
Some relevant information about the liquidity or maturity of assets and liabilities cannot
be adequately communicated solely by classification methods, such as current and
noncurrent, or by sequencing information in financial statements. This Statement and
generally accepted accounting principles provide latitude, in those circumstances, to disclose
information in notes to financial statements. It was stated under paragraph 91, FASB 117.
5.2.3 Statement of Activities
As stated in paragraph 17, the primary purpose of a statement of activities is to provide
relevant information about:
a) the effects of transactions and other events and circumstances that change the amount
and nature of net assets
b) the relationships of those transactions and other events and circumstances to each
other, and
c) how the organization's resources are used in providing various programs or services.
The information provided in a statement of activities, used with related disclosures and
information in the other financial statements, helps donors, creditors, and others to:
1) evaluate the organization's performance during a period
2) assess an organization's service efforts and its ability to continue to provide services,
and
3) assess how an organization's managers have discharged their stewardship
responsibilities and other aspects of their performance.
To help explain the relationships of a not-for-profit organization's ongoing major or

central operations and activities, under paragraph 24 of FASB 117, a statement of activities
shall report the gross amounts of revenues and expenses. However, investment revenues may
be reported net of related expenses, such as custodial fees and investment advisory fees,
provided that the amount of the expenses is disclosed either on the face of the statement of
activities or in notes to financial statements.
11

To help donors, creditors, and others in assessing an organization's service efforts,
including the costs of its services and how it uses resources, a statement of activities or notes
to financial statements shall provide information about expenses reported by their functional
classification such as major classes of program services and supporting activities. Voluntary
health and welfare organizations shall report that information as well as information about
expenses by their natural classification, such as salaries, rent, electricity, interest expense,
depreciation, awards and grants to others, and professional fees, in a matrix format in a
separate financial statement. Other not-for-profit organizations are encouraged, but not
required, to provide information about expenses by their natural classification. It was stated
under paragraph 26.
In paragraph 121 of FASB 117, the AICPA task force recommended that "gains and
losses on investments of permanently restricted net assets should be displayed initially as
permanently restricted, and the amount of net gains available for use by the organization
should be disclosed in the notes to the financial statements." It also said, "To the extent that
accumulated net gains are appropriated for use by the organization in accordance with the
law, such amounts should be displayed as capital reclassifications." Most respondents to the
Invitation to Comment agreed with the recommendation for initial display and disclosure, but
some of those respondents and others said certain amounts subsequently appropriated by the
organization's governing board are "operating reclassifications" rather than "capital
reclassifications.
In paragraph 159 although the statements of activities report expenses by function,
expenses may be reported by natural classification in the statements with functional
classification disclosed in the notes.
5.2.4 Statement of Cash Flow
In paragraph 31, the financial statements shall disclose the nature of any restatements and
their effect, if any, on the change in net assets for each year presented.
12

6.0
PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENT
World Wide Fund (WWF) Malaysia is one of the non profit organisation (NPO) in Malaysia,
so they needs to prepare their own financial statements as a company financial reporting. In
Malaysia, Malaysia Accounting Standard Board (MASB) did not have a specific accounting
standard for the NPO especially related to the requirement of presentation and disclosure.
However, NPO are encourage to comply with the International Financial Reporting Standards
(IFRS) issued by the International Accounting Standard Board and adopted by the MASB or
reporting standards applicable for private entities in the preparation and presentation of their
financial statements.
According to Statement of Financial Accounting Standards No.116,(June 1993) this
Statement establishes standards of financial accounting and reporting for contributions
received and contributions made. Accounting for contributions is an issueprimarily for non
profit organizations because contributions are a significant source ofrevenues for many of
those organizations. However, this Statement applies to all entities(non profit organizations
and business enterprises) that receive or make contributions. ThisStatement also establishes
standards for recognizing expirations of restrictions on contributionsreceived and for
accounting for collections of works of art, historical treasures, and similarassets acquired by
contribution or by other means.
According to Statement of Financial Accounting Standards No.117,(June 1993) this
Statement establishes standards for general-purpose external financial statementsprovided by
a non profit organizations. It specifies that those statements include astatement of financial
position, a statement of activities, and a statement of cash flows. ThisStatement also amends
FASB Statement No. 95, Statement of Cash Flows, to extend itsprovisions to non profit
organizations. It also specifies that voluntary health and welfare organizations continue to
provide a statement of functional expenses, which is useful inassociating expenses with
service efforts and accomplishments of non profit organizations.
13

6.1
Statement of Financial Position
Source:Chairmans Statement, Statement by the Trustees and Audited Financial

Statements WWF For Nature Malaysia 2013
In WWF Malaysia, this report is known as the balance sheet in the for profit universe and
shows the assets, liabilities and net assets of the NPO. This statement shows the balance at a
30 June 2013 and essentially is a snapshot of the organisations financial health on that date.
FASB 117 mandates that the statement of financial position be classified betweeen current
and non current assets and liabilities. In WWF Malaysia, typically current assets include: cash
and bank balance original maturities of less than one year, and sundry receivables that are
14

expected to be collected within one year. Liabilities that are classified as current include
sundry payables is to be earned within one year.
In addition, FASB 117 requires that the statement of financial position report net assets based
on existence of donor imposed restrictions. The total net assets are to be categorized as
unrestricted, temporarily restricted and permanently restricted.
6.2
Statement of Activities
15

For the Statement of Activities, this report is also known as the income statement or the profit
and loss statement. In WWF Malaysia this report known as Statement of Income and
Expenditure for the year ended 30 June 2013. The statement reports the revenue, expenses,
gian and loss of an NPO for a specified period, usually one year. Under FASB 117, all
revenue or support received with donor imposed restricted is reported as temporarily and
permanently restricted revenue. However, expenses incurred to satisfy the restriction are not
reported as temporarily restricted. All expenses are reported as unrestricted and a separate
line amounts released from restriction is included in the statementof activities.
16
Source:Annual Review Highlights WWF For Nature Malaysia 2013
17

The income of World Wide Fund (WWF) for Nature Malaysia as at 30 June 2013 are
comes from donations from coperations and individuals, WWF network grants comes from
two sources which are international grants and others, interest income and others compare
with 30 June 2012 there are extra income from public sector funding. The income for 2013 is
RM36,056,000. And all the expenditure for 30 June 2013 are conservation, fundraising and
administration & finance expenditure. Its amounted to RM38,821,000. So, we can see that the
expenditure as at 30 June 2013 is higher than the income. There are deficit amounted by
RM2,765,000.
18

6.3
Statement of Receipts and Payments

19

For the Statement of Receipts and Payments for the year ended 30 June 2013, its show all the
receipts and payments that has been used WWF Malaysia in 2013. It is summary of cash
book. It also an elemantary form of account commanly adopted by non profit making
concern. The main purpose is to provide information about the company gross receipts and
20

gross payments. The Statement of Receipts and Payments show all the flow of cash and cash
equivalents from the beginning financial year and end of financial year.
6.4
Notes to the Financial Statement

The notes to the financial statements are an integral part of the statement of financial
position, the statement of income and expenditure and statement of receipts and payments.
The notes to the financial statements often provide several pages of information regarding the
nature of the nonprofit's activities as well as a summary of its significant accounting policies.1
1Notes of Financial Statement for WWF for Nature Malaysia attach in appendices.
21

7.0ANALYSIS OF DISCLOSURE COMPLIANCE
7.1
Introduction
Every not-for-profit organizations (NPO) are requires to comply all the requirement by
FASB117 and FASB 116.
These standards will have the most significant impact on
nonprofits in more than 20 years. FASB116 are dealing with contributions made and
received, and FASB 117 dealing with financial statement format. Compliance with both
standards is required for years ending December 31, 1995 and beyond, with an optional one
year delay for small organizations which are those with annual expenditures under
$1,000,000 and total assets less than $5,000,000.
FASB 117 requires that all not-for-profit organizations provide a statement of
financial position, a statement of activities, and a statement of cash flows. It requires
reporting amounts for the organization's total assets, liabilities, and net assets in a statement
of financial position; reporting the change in an organization's net assets in a statement of
activities; and reporting the change in its cash and cash equivalents in a statement of cash
flows.
FASB 116 requires not-for-profit organizations to distinguish between contributions
received that increase permanently restricted net assets, temporarily restricted net assets, and
unrestricted net assets. It also requires recognition of the expiration of donor-imposed
restrictions in the period in which the restrictions expire.
7.2
Purpose of Analysis
The purpose of the analysis is to determined the level of compliance for presentation and
disclosure of financial statements by not-for-profit organizations (NPO) that required by
FASB 117 and FASB 116. Whether the organisation presenting their financial statements by
complying the requirements that have been stated in FASB 117 and FASB 116. It is
determined whether that industry had been complied just for the certain items only or all of
the requirements. The other purpose for this project is also to understand the special
requirements or items of presenting and disclosure in financial statements for the NPO
which is different from athe industry. It is also to analyze the presentation and disclosure
practiced by the selected company which is World Wide Fund (WWF) Malaysia.
22

7.3
Index of Analysis
7.3.1 Financial Accounting Standard Board (FASB) 116
FASB
116
PARA
8
Items
Requirement
WWF
Comply
CONTRIBUTIONS
(Disclosure)
Contributions received
Contributions were
WWF comply
RECEIVED
by not-for-profit
reported as
the requirement
organizations shall be
unrestricted and
reported as restricted
restricted
support or unrestricted
PARA
14
REPORTING BY
support
A not-for-profit
Contributions were
WWF comply
NOT-FOR-
organization shall
reported as
the requirement
PROFIT
distinguish between
unrestricted,
ORGANIZATIONS contributions received
temporarily
with permanent
restricted and
restrictions, those
permanently
received with temporary
restricted.
restrictions, and those

received without donorPARA
17
EXPIRATION OF
imposed restrictions.
A not-for-profit
Donor-imposed
WWF comply
DONOR-
organization shall
restriction expired
the requirement
IMPOSED
recognize the expiration
either with the
RESTRICTIONS
of a donor-imposed
passage of the time
restriction on a
or fulfilment of a
contribution in the
specific pragmatic
period in which the
purpose
restriction expires. A
restriction expires when
the stipulated time has
elapsed, when the
stipulated purpose for
which the resource was
23

restricted has been
PARA
MEASUREMENT
fulfilled, or both.
Not-for-profit
Donor restricted was
WWF comply
20
AT FAIR VALUE
organizations shall
increase
the requirement
report the contribution

income as an increase in
either temporarily or
permanently restricted
net assets if the
underlying promise to
PARA
EFFECTIVE
give is donor restricted.

A not-for-profit
Company did not
29
DATE AND
organization shall report
have any
TRANSITION
the cumulative effect of
extraordinary items
a change in accounting
for the year end
on each class of net
2013.
assets in the statement
They just disclose
WWF comply
of activities between the
for the change in
the requirement
captions "extraordinary
unrestricted net
items," if any, and
assets," "change in
"change in unrestricted
temporarily
net assets," "change in
restricted net assets,"
temporarily restricted
and "change in
net assets," and "change
permanently
in permanently
restricted net
restricted net assets."
assets.".
7.3.2 Financial Accounting Standard Board (FASB) 117
24

FASB
117
PARA
9
PARA
89
Requirement
Items
WWF
(Disclosure)
STATEMENT OF Statement of financial
In WWF Malaysia,
FINANCIAL
position is to provide
typically current
POSITION
relevant information
assets include: cash
about an organization's
and bank balance
assets, liabilities, and net
original maturities of
assets and about their
less than one year, and
relationships to each
sundry receivables
other at a moment in
that are expected to be
time.
collected within one
STATEMENT
Classify assets and
year.
Liabilities that are
OF FINANCIAL
liabilities as current and
classified as current
POSITION
noncurrent, although not
include sundry
required by generally
payables is to be
accepted accounting
earned within one
principles, is a common
year.
Comply
WWF comply
the requirement
WWF comply
the requirement
reporting practice of both

business enterprises and
not-for-profit
PARA
91
PARA
STATEMENT
organizations.
Relevant information
WWF is subject to
WWF comply
OF FINANCIAL
about the liquidity or
liquidity and debt
the requirement
POSITION
maturity of assets and
services coverage
liabilities cannot be
ratio requirement and
adequately
certain restrictions and
communicated solely by
limitations with
classification methods,
respect to incurrences
such as current and
of
noncurrent, or by
Indebtedness,
sequencing information
consolidations and
in financial statements.
merge and transfer of
The primary purpose of a
assets.
WWF Malaysia this
STATEMENT
WWF comply
25

17
OF
statement of activities is
report known as
ACTIVITIES
to provide relevant
Statement of Income
information about:
and Expenditure for
(a)the effects of
the year ended 30
transactions and other
June 2013. The
events and circumstances
statement reports the
that change the amount
revenue, expenses,
and nature of net assets
gain and loss of an
(b)the relationships of
NPO for a specified
those transactions and
period, usually one
other events and
year
the requirement
circumstances to each
other, and
(c) how the
organization's resources
are used in providing
various programs or
PARA
24
PARA
26
STATEMENT
services.
Statement of activities
WWF did not
OF
shall report the gross
comply the
ACTIVITIES
amounts of revenues and
requirement
STATEMENT
expenses
Voluntary health and
WWF did not
OF
welfare organizations
comply the
ACTIVITIES
shall report that
requirement
information as well as
information about
expenses by their natural
PARA
31
STATEMENT
classification,
The financial statements
The Statement of
OF CASH
shall disclose the nature
Receipts and
FLOWS
of any restatements and
Payments show all the
their effect, if any, on the
flow of cash and cash
change in net assets for
equivalents from the
WWF comply
the requirement
26

each year presented
beginning financial
year and end of
financial year.
7.4
Summary and Level of Compliance

7.4.1 Summary of Compliane
FASB 116
Para 8
Para 14
Para 17
Para 20
Para 29
Items
Contribution Receive
Reporting By Not-For-Profit Organizations
Expiration Of Donor-Imposed Restrictions
Measurement At Fair Value
Effective Date And Transition
Compliance
/
/
/
/
/
FASB 117
Para 9
Para 89
Para 91
Para 17
Para 24
Para 26
Para 31
Items
Statement Of Financial Position
Statement Of Activities
Statement of Cash Flow
Compliance
/
/
/
/
X
X
/
7.4.2 Level of Compliance
27
FASB 116
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FASB 116
Comply; 500.00%
Not comply; 0.00%

Comply
Not comply
Figure 1: Level of Compliance for FASB116
FASB 117
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
FASB 117
Comply; 500.00%
Not comply; 200.00%
Comply
Not comply
Figure 1: Level of Compliance for FASB117
28

7.5
Conclusion
From the analysis that had been made, we can conclude that, WWF comply majority of
reiurement made by FASB 117 (71.43%), and fully comply with FASB 116. It made the
users of the financial statement get enough information and easy for them to made decision
especially to increase the fund to the organisation. Besides that, the impact of FAS 116 and
117 is so extensive that all levels of operations at a nonprofit will be affected. It not just the
accounting office but all the related parties. For example, development officers will need to
know the exact terms of contributions in order to correctly record them under the new
standards, legal assistance may be needed to determine the proper treatment for endowment
fund gains and losses, and computer assistance may be required to accommodate the new
reporting requirements.
29

8.0
CONCLUSION
We can conclude that World Wide Fund (WWF) For Nature Malaysia the financial statements
company are mostly complied with the disclosure requirements as stated in the specific
Financial Accounting Standard Board (FASB) 116 and 117 discussed earlier except for
certain disclosure. To the extent practicable and applicable, the information in the financial
statements are presented and disclosed in accordance to the FASB 116 and 117. The required
information is either being disclosed in the financial statements or in the notes to the financial
statements or both. The disclosures enable us to identify the changes, material matters or
events and the significant risk faced the companies. But still, some of the disclosure
requirements in the specific FASB 116 and 117 are not applicable in the financial statements
of WWF. There are some circumstances that WWF not fully follow the requirement but still
comply most as stated by FASB 116 and 117.
As a conclusion, financial statements should be prepared in accordance to the
standards. Otherwise, the Non Profit Organisation (NPO) did not have a specific standard
provide by Malaysian Financial Reporting Standard (MFRS) so NPO needs to follows the
standard provide by FASB. The information provided will tend to mislead the users to make
wrong decisions and take inappropriate actions. FASB set out the disclosure requirements
with the objective to enhance the understandability, reliability, comparability and relevance of
the financial statements. The financial report which complies with the disclosure
requirements will provide a true and fair view and it is useful in assisting the users to make
decisions.
30

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2014,
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http://www.accounting4management.com/receipt_and_payment_account.htm
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33

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World Wide Fund (WWF) Malaysia

Non Profit Organisation

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) For Nature Malaysia

World Wide Fund (WWF) Malaysia

NATURE AND FUTURE OF INDUSTRY

World Wide Fund (WWF) Malaysia

RELATED LAWS AND STANDARD

World Wide Fund (WWF) Malaysia

FINANCIAL STATEMENTS NEED TO BE PREPARED BY NON PROFIT

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

DISCLOSURE REQUIREMENT OF A SPECIFIC ITEM FOR THAT NON

Financial Accounting Standard Board (FASB) 116

According to Paragraph 8 FASB 116, Contributions received shall be recognized as

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

Financial Accounting Standard Board (FASB) 117

According to Financial Accounting Standard Board (FASB) 117,paragraph 7, this Statement

World Wide Fund (WWF) Malaysia

To help explain the relationships of a not-for-profit organization's ongoing major or

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

PRESENTATION AND DISCLOSURE OF FINANCIAL STATEMENT

World Wide Fund (WWF) Malaysia

Statement of Financial Position

Source:Chairmans Statement, Statement by the Trustees and Audited Financial

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

Source:Chairmans Statement, Statement by the Trustees and Audited Financial

World Wide Fund (WWF) Malaysia

Source:Annual Review Highlights WWF For Nature Malaysia 2013

World Wide Fund (WWF) Malaysia

World Wide Fund (WWF) Malaysia

Statement of Receipts and Payments

Source:Chairmans Statement, Statement by the Trustees and Audited Financial

World Wide Fund (WWF) Malaysia

Source:Chairmans Statement, Statement by the Trustees and Audited Financial

World Wide Fund (WWF) Malaysia

Notes to the Financial Statement

World Wide Fund (WWF) Malaysia

These standards will have the most significant impact on

World Wide Fund (WWF) Malaysia

ORGANIZATIONS contributions received

received with temporary

restrictions, and those

recognize the expiration

either with the

passage of the time

period in which the

World Wide Fund (WWF) Malaysia

Donor restricted was

report the contribution

give is donor restricted.

Company did not

organization shall report

the cumulative effect of

for the year end

on each class of net

assets in the statement

They just disclose

of activities between the